At the last moment, my wife and I decided to drive north and visit with family for the holidays. Flights were sold-out or seemed rather overpriced, and our little Tercel seemed hardly up to the journey, given the potential driving conditions. We ultimately agreed that the time had come to give in to that dreaded suburban icon: the minivan.
Given the practicality of this type of vehicle and our expanding family’s plans for future road-trips, it seemed to make perfect sense. So, I slogged through endless car reviews, comparisons, fuel-economy and safety ratings, and focused our search on a low-mileage Honda Odyssey.
A great performance, but a horrible experience
In my mind, there’s little enjoyment in a vehicle purchase, and given our urgency we were motivated to have it done with. Applying as systematic of an approach to the purchase as possible, I developed matrices for comparison, and narrowed our search to one car at Deer Lake Chrysler in Burnaby. I made a quick call and was then led through what seemed like a highly choreographed production.
We started with the routine that most would expect of a car dealership: haggling, bargaining, stories about how they were selling to me below cost, and those rather staged, “I’ll check with my manager” absences. To be fair though, the sales person seemed like a pretty nice fellow. I chalked the whole thing up to the nature of his profession. I agreed to a price and signed the purchase agreement.
I then was led to Deer Lake Chrysler’s Business Manager, who could well have been the model for a character in the play Glengarry Glen Ross. He brought out elaborate charts and launched into persuasive dialogue on how I really needed to spend $4,000 on a warranty package. The charade hit what I felt was a high note when he explained to me, “Don’t believe what those sales guys tell you; you can’t trust any of them.” I couldn’t believe this guy; why would any business-person state that their coworkers were dishonest?
Now I know what you’re thinking. Why wouldn’t I just back out then? The truth is that I was stuck, and so worn-out that I had little energy left to fight. Now, I could tell you about how he continued by trying to slip in an extra $500 in charges and then threatened me when I asked what they were doing on the bill; or, I could talk about the bait and switch involved in how the car was advertised; heck, I could even go on about the Oscar-worthy performance that he launched into for “taking the sales person’s commission.”
Instead, I want to talk about brands.
Brands are not identities (repeat, repeat, repeat…)
I’m always amazed by the magical reverence that people place upon identity systems. There’s a notion that many subscribe to, that these systems and strategies can transcend reality. Surely, brand assets can do amazing things, but a fresh coat of paint on a crumbling building doesn’t transform it into a sound structure.
Identities are positioning systems–quite often they can be looked upon as icons and patterns that assist in the taxonomy and understanding of products and services. (For example, clean photographs with ample white space help us identify an advertisement as being one of Apple’s.) Brands are less easy to define. They are a collection of both tangible and ethereal elements that typically become greater than the sum of their parts.
Brands are everything to a business, and many groups destroy their brands by confusing a well-designed identity system as a substitute for a positive brand experience. Your graphic standards are just one small aspect of your brand. Equally important is the sincerity of your smile, the cleanliness of your workspace, how you return or don’t return phone calls, and a litany of other experience-based markers.
Brands require long-term attention to detail, and regardless of whether your business talks about branding or not, you have a brand.
The cost of a negative brand experience
For all of the pitches and tricks that seemed to be part of Deer Lake Chrysler’s modus operandi, I still spent no more on the minivan than I had originally intended to. The song and dance simply did not work. I didn’t purchase the seemingly exorbitantly-priced warranty package; I demanded they remove the unauthorized charges; and I was unwilling to be “guilted” into overpaying, regardless of how that might affect the salesperson’s commission.
In the weeks since buying our van from Deer Lake Chrysler, I have spoken with no fewer than a dozen people about how disappointing the experience was. I will never entertain the notion of visiting the dealership again. Perhaps more importantly, the experience sat with me for so long, that it made its way into this blog.
So, let’s add this up. I’ll never buy a car there. My friends are now unlikely to shop there. The 60,000 people who read this blog monthly will, at very least, think twice about looking at cars there. The total purchase my wife and I made added up to less than $25,000. My question is: How many advertisements have to be run to gain one new customer, versus the many lost to a negative brand experience?
Good brands are about common sense
On the flip-side, the people at Deer Lake Chrysler could have treated the transaction as our “first engagement”. It could have set the stage for numerous future purchases (I intend to drive something other than a minivan in the future), and continued positive word of mouth. I needed no special bonus, no gift package, and no “cash-back” allowance. I just expected to be treated respectfully. Total cost of doing so: zero. Isn’t that great for business-owners? The most lasting and memorable things you can do for your customer cost little to nothing.
I have amazing brand experiences all the time and I share these stories with peers. This is what Chuck Brymer from DDB alludes to when he talks about swarms. You create swarms around brands by doing something remarkable: acknowledging and correcting mistakes, being forthcoming, and treating your customers as humans, not “targets”. Any number of things can make a customer feel like they matter. This is often all it takes to establish a brand that will enjoy loyal customer relationships and naturally generate repeat sales.
I think the key to all of this is in tasting your own medicine. Walk in to your business as though you are the customer, and see how you feel by your own business practices. Do you feel attended to? Cared for? Respected? I would hazard a guess that few of the people at Deer Lake Chrysler would feel good about their company had they experienced their service as I did.
In the meanwhile, big ad agencies and brand strategists are talking about integrated marketing strategies, cross-channel alignment, and communities. Don’t get me wrong, these are all are relevant issues, but few seem to resonate with me as much as good, old fashioned customer service. When Paul (the owner of McInnis Lighting, and a client of ours) offers to carry my purchase to the car for me, I can’t imagine shopping anywhere else.
It is simple folks; and a lot of us are missing the mark by thinking that it has to be complicated.
Blogs build (and kill) brands
A few years ago, Robert Ouimet invited me to take part in a panel discussion in which we discussed whether blogs would supersede brands. I found the topic difficult to wrap my head around, as it seemed the two were hardly in battle with one another. All organizations have brands, be they good or bad; whereas, blogs are a delivery channel (albeit a very powerful one).
The reality is that blogs are becoming inexorably influential in maintaining brands. Blogs can both build brands up (think: Robert Scoble) and break them down (think: Kryptonite locks) with awe-inspiring force. Acknowledging this interconnection is in large part why I write this post. The situation I cite with Deer Lake Chrysler represents just how unaware many organizations are regarding the sea-change in marketing that is currently underway. In a pre-web world, marketing was synonymous with advertising; today, the customer is active and has true recourse.
Old-world communications were sheltered by “one-way” functions. Through technology, however, consumers have tremendous power. The new paradigm allows us to respond, and to broadcast (widely) our own messages. While in the past a passionate consumer might talk to a few, today’s tools amplify that voice exponentially; moreover, this voice is extended, as our posts are Google-indexed and etched into the fabric of the web. In this situation, I’d have hoped they would have learned something from the rather grave story that ran about the dealership a few years ago, and still ranks highly when searching their name.
What I speak of is hardly news to most of us. For the old-guard of businesses though, this will prove a colossal barrier. If the people at Deer Lake Chrysler, and those like them, wish to survive in this changing world, they’ll need to change who they are to the very core.
Eric,
Thanks for another great post. You're right that this is hardly news to most of us, yet it is still sinking in on the corporate level. From a marketing and/or PR perspective for most types of companies, blogging can be a powerful tool for refining your online reputation, which will ultimately be what consumers either advocate for or tear down online through forums or their own blogs. Unfortunately, if companies don't act, the consumer opinion can take authority over that reputation pretty quickly.
I wrote a blog post last month on that very subject (you can read it here: http://www.newfangled.com/egg_on_your_screen).
- Chris
Thanks for sharing your experience. You touch on the "treat your friends like you want to be treated" concept that most parents tell their children. It is strange how hard it is to find good customer service when executing it should be as simple as applying that statement to your business practices.
As a 25 year auto industry worker (sales mgr.,sales rep.) I would tell you that the practices of the business manager i.e. f&I (finance and administration) would not be acceptable had he /she worked for myself, but I hope that the Dealer principle (owner) was informed of your experience as he is truly the only one within that store to envoke strong change. Although I sympathize with you on that experience my fear is that blogs like these tend to paint all with the same brush and as Im sure you are aware, all businesses are plaqued with the challenge of finding good people. Many of which do work in dealerships, i.e. the many 20 plus year people who only sell to referrals and repeat customers. Does Deer Lake Chrysler have any of those people? I don't think there is any business where i have not had both good and bad experiences and I only hope you are as passionate when criticizing you local (hardware,furniture store etc.) Regards Jed.
Hi Jed,
That's a good point, and likely one I should respond to in order to clarify. I've made special note of my experience with the Business Manager; however, the tactics that seemed to be employed didn't appear to be limited to him. That being said, my blog posts tend to be a bit long, so I chose to focus on his actions and comments, as they were the most overwhelming.
I understand how powerful a blog is, and thought carefully before posting this. It could be that others have had excellent experiences with the dealership. I can only comment on my experience, and do hope that it was an isolated incident. As noted in this article from CTV though, it appears that it's a bit of a pattern for this group: http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20020426/ctvnews861140?s_name=&no_ads=
Thanks for your thoughts and feedback! :-)
Eric
If ever there was a model screaming out for the need for disintermediation, it's the car sales business.
My recent introduction to your writing has been such a pleasurable one. After reading about this particular experience, I'm reminded yet again that business as a whole still misses the point that the actual interaction with the customer counts as much if not more than any advertising or marketing paid for beforehand.
I had a similar experience in a dealership seven years ago. I also tell anyone who happens to mention the dealership what happened. It was SEVEN years ago, and yet the experience has stuck. I doubt the finance person I had the issue with is still employed there, but I'll never go back. I've since purchased three cars from another dealership with stellar customer service who I'm quick to recommend. How does a business owner quantify that loss or that benefit?
Then, beyond our personal memories, there's the stories that other people are sharing and that searchers can find via Google. People are talking, and the conversations are going beyond neighborhoods and stretching around the world. I wonder what catalyst resistant companies, both local and global, will require to recognize this change.
Thanks for sharing.
I was kinda lucky in buying my new car from a Prince George dealership in that I didn't face too much of the hidden fee, service plan, extended warranty nonsense. I think the price was probably fair.
There was one somewhat sleazy thing though. The dealership of course tried to sell the $200 or $300 anti-rust undercoating. I'd done my homework and found out that the anti-rust coating is usually worthless, so I turned it down. Thankfully I did... I read in the warranty guide that the car has an anti-rust treatment from the factory and any additional anti-rust agents were not required.
I so appreciate this blog, and your thinking. And your sharing.
I've recently ranted about a series of similar experiences at Sears, which span a few years. They are another example, atleast in my experience, of a company that has lost a grip on the importance of, well, me. And you, should you too have a poor experience. And I suppose that's in fact the point. Each touchpoint represents an opportunity to build on the brand experience or not. One thing the collaborative media offers, if a company is transparent, is grace. If a company can admit the wrong and correct it, they can turn a situation like you experienced into a win. Because you would have likely blogged on that turn of events as well.
Thanks for this great blog.
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While I certainly appreciate Jed Bartlett's contrition and demeanor, I believe the auto sales industry stands apart from almost all others, inasmuch as it's entire business model is obsolete and useless. There is no need for car dealerships, or any of their generally sleazy denizens, period.
They were originally established because car purchases were a very big deal and people needed protection from lemons. In today's Web world, there are almost countless alternate solutions to protect consumers against lemons, and dealerships are surely the very worst one.
The car industry is its own uniquely fouled-up industry. Can anyone honestly say why we don't buy cars direct from the manufacturer? Surely Toyota could create distribution 'hubs' in major cities to stock cars, then sell directly to the consumer and have some sort of service to drive the vehicle to the client or have them come in and pick it up themselves. They are already storing cars for distribution to dealership networks and you know those clowns are charging steep markups to sell the cars to consumers. The entire dealership model needs to be broken down entirely.
Too many business think once they have paid a firm to design their brand that it somehow maintains itself. You are only as good as your last project or sale.
I can't ever remembering having a POSITIVE car buying experience.
Great!
In this post on brand experience with Terra Chips, you can see the effect is is already having in Google's Rankings (google links at end of second article)
Eric,
Thanks for sharing. I will never visit this sleazlership and make sure to warn all my friends and family as well. My brother used to be an Acura salesman, so I have a little insight into the car buying process. It's such a duplicitous business. Can I suggest you post a brief version on Sutori.com to spread the word?
[...] swissmiss: blogs can kill brands. blogs increasingly seem to have the power to build up and break down brands. according to the [...]
I hate to sound like my dad, but you have to go in to a dealership with guns a'blazing. You have to do research on what you're buying, know the price range and let them know you mean business, and you're not getting screwed. You also can't be afraid to walk away. The last time I made an offer on a car they said, "we can't go any lower," I walked out. They also called me 4 times in the next week. I guess they could go lower, but they lost the sale because I don't have time to play games. You got to be tough to earn their respect, and sadly the onus is placed on the consumer. Is the CarMax model going to change this? Who knows, but at least they're trying a different way to work with consumers. Kudos for a great blog and thought generator.
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Cool post. You have to admit though that the very nature of the purchase you just made is negative. I mean, everyone knows that a car dealership will try to bully you into spending more money. And I agree, that's a big mistake and the reason is that all they try to do (at least in the car industry) is sales-oriented marketing.
Also, I attended a seminar the other day on virtual communities and how they influence today's marketing activities. I am quite young (26), but thank God I have already realised that today consumers hold the power. In the old days, brands would just transmit messages but it's consumers now that shape their own messages about brands. With internet acting as the amplifier, user-generated content I believe will set the trend for brands. All brands can do is try and catch up (look at facebook for example... brands trying to get on board and use it as a medium... although to be honest I don't think it's working).
Oh and don't worry, driving a Chrysler is always better than buying one :) Cool brand really :)
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